Market dynamics and consumer shifts support U.S. beef
Consumers in China are slowly trading up their protein choices. The transition from vegetable proteins to animal-based proteins is now including more beef, which is creating more demand and value for U.S. cattle.
“Although beef is not yet a major animal protein for most Chinese consumers and is unlikely to become one in the foreseeable future, its rising share of total animal protein consumption means a significant change is taking place,” says Chenjun Pan, Rabobank senior analyst for animal protein.
Pan says these factors are increasing Chinese beef consumption:
- More consumers are consuming beef at home.
- The expansion of e-commerce makes beef more easily available.
- Consumers know more about beef quality and cooking methods.
- Middle-to-high-income consumer segments are expanding.
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China has long been a top 10 market for U.S. beef trade, says Glynn Tonsor, Kansas State University livestock economist. In the last year, it has moved up to the third largest importer of U.S. beef.
“China is helping us become more diversified in terms of export markets,” he says. “We could probably have sent even more beef to them this year if we weren’t facing supply chain issues.”
Traditionally Argentina and Australia claim the biggest share of Chinese beef imports. But, a multi-year drought in Australia and restrictions on beef exports from Argentina reduced their piece of the pie, Tonsor says.
“It will likely take Chinese consumers decades to become big beef eaters,” he says. “But China remains a viable and growing market for U.S. beef.”
